Market Research Logo

Future of the Czech Republic Defense Industry - Market Attractiveness, Competitive Landscape, and Forecasts to 2022

Future of the Czech Republic Defense Industry - Market Attractiveness, Competitive Landscape, and Forecasts to 2022

Summary

The Czech Republic’s defense budget values US$2.15 Billion in 2017, and registered a CAGR of 0.76% during the historic period. The urgent need to modernize the country’s defense arsenal, especially in the wake of the current European migration crisis and Russia military aggression in Ukraine has woken the concerned authorities to the possibility of an armed conflict in Europe.

Czech Republic homeland security expenditure stands at US$2.69 Billion in 2017 and registered a CAGR of (minus) -1.02% during the historic period. Over the forecast period, the country’s homeland security expenditure is expected to increase from US$2.82 Billion in 2018 to US$3.25 Billion by 2022, reflecting a CAGR of 3.66%.
The country’s defense imports were highest in 2012 due to the procurement of four C-295 military aircraft, but declined thereafter due to budget cuts. Israel emerged as Czech Republic’s largest arms supplier during 2012-2016, supplying 39.5% of the country’s total defense imports; Italy stood as the second-largest arms supplier to Czech Republic between 2012 and 2016, supplying 23.7% of Czech’s imports, followed by Austria, which supplied 21.1%.

During 2012-2016, Iraq was the largest importer of Czech Republic defense equipment, accounting for 48% of Czech Republic’s total defense exports, with Vietnam emerging as the second largest export destination with 14% share in exports. Over 2012-2016, Aircraft accounted for the highest share of the total Czech Republic defense export with 46.6% during the historic period, followed by armored vehicles with 35.4%, sensors with 13.7%, and artillery with 4.1%.

The report “Future of the Czech Republic Defense Industry - Market Attractiveness, Competitive Landscape, and Forecasts to 2022” offers insights into the market opportunities and entry strategies adopted by foreign OEMs (original equipment manufacturers) to gain a market share in the Czech Republic defense industry.

In particular, it offers in-depth analysis of the following -
- Market opportunity and attractiveness: Detailed analysis of the current industry size and growth expectations during 2018-2022, including highlights of the key growth stimulators. It also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
- Procurement dynamics: Trend analysis of imports and exports, together with their implications and impact on the Czech Republic defense industry.
- Industry structure: Porter’s five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.
- Market entry strategy: Analysis of possible ways to enter the market, together with detailed descriptions of how existing companies have entered the market, including key contracts, alliances, and strategic initiatives.
- Competitive landscape and strategic insights: Analysis of the competitive landscape of the defense industry in Czech Republic, providing an overview of key defense companies (both domestic and foreign), together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
- Business environment and country risk: A range of drivers at country level, assessing business environment and country risk. It covers historical and forecast values for a range of indicators, evaluating business confidence, economic performance, infrastructure quality and availability, labor force, demographics, and political and social risk.

Companies mentioned in this report: Aero Vodochody, Lom Praha, VOP CZ, Omnipol, Aura, Dicom, spol, Českázbrojovka

Scope

- The Czech Republic’s defense budget values US$2.15 billion in 2017, and registered a CAGR of 0.76% during the historic period. The urgent need to modernize the country’s defense arsenal, especially in the wake of the current European migration crisis and Russia military aggression in Ukraine has woken the concerned authorities to the possibility of an armed conflict in Europe. Coupled with the country’s participation in peacekeeping operations and counter terrorism, this has driven the Czech Republic defense expenditure during the historic period.
- The capital expenditure allocation, which declined at an average of -5.2% during the historic period, is expected to increase significantly by an average of 12.4% during the forecast period. Key opportunities for equipment suppliers are expected in sectors such as military radar, transport aircraft, infantry vehicles, and military helicopters.
- The MoD expected to invets in ammunition, weaponry, and equipment including new types of armament, new multi-role helicopters, infantry fighting vehicles, and air defense systems

Reasons to buy

- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Czech Republic defense industry market trends for the coming five years
- The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period
- Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector
- A deep qualitative analysis of the Czech Republic defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts


1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About Strategic Defence Intelligence
2. Executive Summary
3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Primary threat perception
3.1.2. Military Doctrine & Strategy
3.1.3. Military Fleet Size
3.1.4. Procurement Programs
3.1.5. Social, Political and Economic Environment & Support for Defense Projects
3.1.6. Political & Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Czech Republic defense expenditure is expected to reach US$3.52 billion by 2022
3.2.2. Growing Russian assertiveness, military modernization initiatives and counter-terrorism are expected to fuel defense expenditure over the forecast period
3.2.3. Czech Republic defense expenditure as a percentage of GDP is expected to grow significantly over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Capital expenditure allocation expected to increase during the forecast period
3.3.2. Capital expenditure to increase at a CAGR of 13.69% over 2018-2022
3.3.3. Central Support Administration and Command expenditure hold lion’s share tin Czech Republic defense budget
3.3.4. Czech Army expenditure to increase significantly over the forecast period
3.3.5. Czech Air force budget to grow at a CAGR of 10.72% during the forecast period
3.3.6. Central Support Administration and Command expenditure to grow progressively over the forecast period
3.3.7. Per capita defense expenditure is expected to increase during the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Czech Republic homeland security market to increase at a CAGR of 3.66%over the forecast period
3.4.2. Homeland security expenditure to be triggered by the country’s efforts to counter cyber-attacks, migration crisis and espionage
3.4.3. Czech Republic faces moderate level of threat from foreign terrorist organizations
3.4.4. Czech Republic falls under “moderately affected” by terrorism category
3.4.5. Czech Republic has a terrorism index score of “2.2”
3.5. Benchmarking with Key Global Markets
3.5.1. Czech Republic’s defense budget is poised to grow over the forecast period
3.5.2. Czech Republic’s defense spending is low compared to other European nations
3.5.3. Czech Republic allocates a significant percentage of GDP towards defense
3.6. Market Opportunities: Key Trends and Growth Stimulators
3.6.1. Multi-role aircraft
3.6.2. Transport Aircraft
3.6.3. Military Helicopter
3.6.4. Military Radar
4. Defense Procurement Market Dynamics
4.1. Import Dynamics
4.1.1. Defense imports recorded a decline during 2012-2014
4.1.2. Czech Republic sourced the majority of its arms imports from Israel and Italy
4.1.3. Missiles and armored vehicles are the major military hardware imports
4.2. Export Market Dynamics
4.2.1. Czech Republic defense exports expected to show marginally steady growth over the forecast period
4.2.2. Iraq dominated the Czech Republic defense export market during the historic period
4.2.3. Aircraft and armoured vehicles accounts for the highest portion of Czech defense exports
5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of supplier: low to medium
5.1.2. Bargaining power of buyer: medium
5.1.3. Barrier to entry: medium
5.1.4. Intensity of rivalry: medium to high
5.1.5. Threat of substitution: Medium to high
6. Market Entry Strategy
6.1. Budgeting Process
6.2. Procurement Policy & Process
6.3. Market Regulation
6.3.1. Offset policy aids the development of the domestic defense industry
6.3.2. The Czech Republic allows 100% foreign direct investment in the defense sector
6.4. Market Entry Route
6.4.1. Bilateral business partnerships are the preferred entry routes
6.4.2. Foreign OEMs enter into the market through the formation of consortiums and joint product development agreements
6.5. Key Challenge
6.5.1. Limited defense budget limits the market entry of foreign companies
6.5.2. Lack of harmonization of procurement requirements and defense industrial policies
6.5.3. Corruption acts as an obstacle for market entry
7. Competitive landscape and Strategic Insights
7.1. Competitive Landscape: Overview
7.2. Key Domestic Companies
7.2.1. Aero Vodochody A.S.: Overview
7.2.2. Aero Vodochody A.S.: Products and services
7.2.3. Aero Vodochody A.S.: Recent announcements and strategic initiatives
7.2.4. Aero Vodochody A.S.: Alliances
7.2.5. Aero Vodochody A.S.: Recent contract wins
7.2.6. Lom Praha s.p.: Overview
7.2.7. Lom Praha s.p.: Products and services
7.2.8. Lom Praha s.p.: Recent announcements and strategic initiatives
7.2.9. Lom Praha s.p.: Alliances
7.2.10. Lom Praha s.p.: Recent contract wins
7.2.11. VOP CZ, s.p.: Overview
7.2.12. VOP CZ, s.p.: Product and services
7.2.13. VOP CZ, s.p.: Recent announcements and strategic initiatives
7.2.14. VOP CZ, s.p.: Alliances
7.2.15. VOP CZ, s.p. Recent contract wins
7.2.16. Omnipol a.s.: Overview
7.2.17. Omnipol a.s.: Product and services
7.2.18. Omnipol a.s.: Recent announcements and strategic initiatives
7.2.19. Omnipol a.s.: Alliances
7.2.20. Omnipol a.s.: Recent contract wins
7.2.21. Aura s.r.o.: Overview
7.2.22. Aura s.r.o.: Product and services
7.2.23. Aura s.r.o.: Recent announcements and strategic initiatives
7.2.24. Aura a.s.: Alliances
7.2.25. Aura s.r.o.: Recent contract wins
7.2.26. Dicom, spol.s.r.o.: Overview
7.2.27. Dicom, spol.s.r.o.: Product and services
7.2.28. Dicom, spol.s.r.o.: Recent announcements and strategic initiatives
7.2.29. Českázbrojovka a.s.: Overview
7.2.30. Českázbrojovka a.s.: Product and services
7.2.31. Českázbrojovka a.s.: Recent announcements and strategic initiatives
7.2.32. Českázbrojovka a.s.: Recent contract wins
7.2.33. Tesla, akciovaspolecnost: Overview
7.2.34. Tesla, akciovaspolecnost: Product and services
7.2.35. Tesla, akciovaspolecnost: Recent announcements and strategic initiatives
7.2.36. Tesla,akciovaspolecnost: Recent contract wins
7.2.37. Tatra a.s.: Overview
7.2.38. Tatra a.s.: Product and services
7.2.39. Tatra a.s.: Recent announcements and strategic initiatives
7.2.40. Tatra a.s.: Alliances
7.2.41. Tatra a.s.: Recent contract wins
7.3. Key Foreign Companies
7.3.1. LetovLeteckaVyroba S.r.o.: Overview
7.3.2. LetovLeteckaVyroba S.r.o.: Product and services
8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. GDP Per Capita
8.1.2. GDP, Current Prices
8.1.3. Exports of goods and services, current prices
8.1.4. Imports of goods and services, current prices
8.1.5. Gross National disposable income (US$ Billion)
8.1.6. Local Currency Unit per US Dollar
8.1.7. Market Capitalization of Listed Companies
8.1.8. Market Capitalization of Listed Companies a percentage of GDP
8.1.9. Government Cash Surplus/Deficit as a percentage of GDP
8.1.10. Goods exports as a percentage of GDP
8.1.11. Goods imports as a percentage of GDP
8.1.12. Service Imports as a percentage of GDP
8.1.13. Service Exports as a percentage of GDP
8.1.14. Foreign direct investment, net (BoP, current US$ Bn)
8.1.15. Net foreign direct investment as % of GDP
8.1.16. Mining, Manufacturing, Utilities Output (LCU Billion)
9. Appendix
9.1. About SDI
9.2. Disclaimer
List of Tables
Table 1: Czech Republic Land Forces Strength
Table 2: Czech Republic Air Force Strength
Table 3: Czech Republic Ongoing Procurement Programs
Table 4: Czech Republic Future Procurement Programs
Table 5: Czech Republic Defense Expenditure (CZK billion& US$ billion), 2013-2022
Table 6: Czech Republic GDP Growth vs. Defense Expenditure as a Percentage of GDP, 2013-2022
Table 7: Czech Republic Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2022
Table 8: Czech Republic Defense Capital Expenditure (CZK Billion & US$ Million), 2013-2022
Table 9: Czech Republic Defense Expenditure Allocation (% Share), 2013-2022
Table 10:Czech Republic Defense Expenditure for Army (CZK Billion & US$ Million), 2013-2022
Table 11: Czech Defense Expenditure for Air Force (CZK Billion & US$ Million), 2013-2022
Table 12: Czech Defense Expenditure for CSAC (CZK Billion & US$ Million), 2013-2022
Table 13: Czech Republic Per-Capita Defense Expenditure (US$), 2013-2022
Table 14:Czech Republic Homeland Security Expenditure (CZK Billion & US$ Billion), 2013-2022
Table15: Terrorism Index, 2017
Table 16: Benchmarking with Key Markets - 2013-2017 vs. 2018-2022
Table 17: Offset Regulations in the Czech Republic
Table 18: Market Entry Strategies by Key Foreign Companies
Table 19: Competitive Landscape of the Czech Republic Defence Industry
Table 20: Aero Vodochody A.S. - Product Focus
Table 21: Aero Vodochody A.S.: Alliances
Table 22: Aero Vodochody A.S.: Recent Contract Wins
Table 23: Lom Praha s.p. - Product Focus
Table 24: Lom Praha s.p.: Alliances
Table 25: Lom Praha s.p.: Recent Contract Wins
Table 26: VOP CZ, s.p. - Product Focus
Table 27: VOP CZ, s.p. Alliances
Table 28: VOP CZ, s.p.: Recent Contract Wins
Table 29: Omnipol a.s. - Product Focus
Table 30: Omnipol a.s.: Alliances
Table 31: Omnipol a.s.: Recent Contract Wins
Table 32: Auro s.r.o. - Product Focus
Table 33: Aura a.s.: Alliances
Table 34: Auros.r.o.: Recent Contract Wins
Table 35: Dicom, spol. s.r.o. - Product Focus
Table 36: Českázbrojovka a.s. - Product Focus
Table 36: Českázbrojovkaa.s.: Recent Contract Wins
Table 38: Tesla, akciovaspolecnost - Product Focus
Table 39: Tesla,akciovaspolecnost: Recent Contract Wins
Table 40: Tatra a.s. - Product Focus
Table 41: Tatra a.s.: Alliances
Table 42: Tatra a.s.: Recent Contract Wins
Table 43: LetovLeteckaVyroba s.r.o. - Product Focus
List of Figures
Figure 1: Czech Republic Defense Expenditure (CZK Billion), 2013-2022
Figure 2: Czech Republic Defense Expenditure (US$ Billion), 2013-2022
Figure 3: Czech Republic GDP Growth vs. Defense Expenditure as Percentage of GDP, 2013-2022
Figure 4:Czech Republic Budget Split Between Capital and Revenue Expenditure (%),2013-2022
Figure 5: Czech Republic Defense Capital Expenditure (CZK Billion), 2013-2022
Figure 6:Czech Republic Defense Capital Expenditure (US$ Million), 2013-2022
Figure 7: Czech Defense Expenditure Allocation (% Share), 2013-2022
Figure 8: Czech Republic Army Defense Budget (CZK Billion), 2013-2022
Figure 9: Czech Republic Army Defense Budget (US$ Million), 2013-2022
Figure 10: Czech Air Force Defense Budget (CZK Billion), 2013-2022
Figure 11: Czech Air Force Defense Budget (US$ Million), 2013-2022
Figure 12: Czech CSAC Defense Budget (CZK Billion),2013-2022
Figure 13: Czech CSAC Defense Budget (US$ Million), 2013-2022
Figure 14: Czech Republic Per Capita Expenditure (US$), 2013-2022
Figure 15: Czech Republic Homeland Security Budget (CZK Billion), 2013-2022
Figure 16: Czech Republic Homeland Security Budget (US$ billion), 2013-2022
Figure 17: Terrorism Heat Map,2017
Figure 18: Terrorism Index, 2017
Figure 19: Benchmarking with Key Markets - 2013-2017 vs. 2018-2022
Figure 20: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2017 and 2022
Figure 21: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2017
Figure 22: Multi-role Aircraft Market Size (US$ Million), 2017-2027
Figure 23: Transport Aircraft Market Size (US$ Million), 2017-2020
Figure 24: Military Helicopter Size (US$ Million), 2017-2027
Figure 25: Military Radar Market Size (US$ Million), 2017-2027
Figure 26: Czech republic Defense Imports (US$ Million), 2012-2016
Figure 27: Czech Republic Defense Imports by Country (%),2012-2016
Figure 28: Czech Republic Defense Imports by Category (%),2012-2016
Figure 29: Czech republic Defense Exports by Value (US$ Million),2012-2016
Figure 30: Czech Republic Defense Exports by Country (%),2012-2016
Figure 31: Czech republic Defense Exports by Category (%),2012-2016
Figure 32: Industry Dynamics - Porter’s Five Forces Analysis
Figure 33: Czech Republic GDP Per Capita, 2015-2025
Figure 34: Czech Republic GDP, Current Prices (In US$ Billions), 2015-2025
Figure 35: Czech Republic Exports of goods and services, current prices (LCU Billion), 2005- 2014
Figure 36: Czech Republic Imports of goods and services, current prices (LCU Billion), 2005- 2014
Figure 37: Czech Republic Gross National Disposable Income (US$ Billion), 2005- 2013
Figure 38: Local Currency Unit per US$- Exchange Rate , 2015-2024
Figure 39: Czech Republic Market Capitalization of Listed Companies (US$ Billion), 2005-2012
Figure 40: Czech Republic Market Capitalization of Listed Companies as percentage of GDP, 2005-2012
Figure 41: Czech Republic Government Cash Surplus/Deficit as a percentage of GDP, 2005-2012
Figure 42: Czech Republic Goods Exports as a percentage of GDP, 2005-2014
Figure 43: Czech Republic Goods Imports as a percentage of GDP, 2005-2014
Figure 44: Czech Republic Service Imports as a percentage of GDP, 2005-2014
Figure 45: Czech Republic Service Exports as % of GDP, 2005-2014
Figure 46: Czech Republic Foreign direct investment, net (BoP, current US$ Bn), 2005-2014
Figure 47: Czech Republic Net foreign direct investment as % of GDP, 2005-2014
Figure 48: Czech Republic Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report